A Study on the Relationship between Economic Value Added and Stock Return in Taiwan

碩士 === 國立交通大學 === 科技管理研究所 === 86 === Economic Value Added (EVA), developed by Stern Stewart & Co., is a financial tool that enables companies to do more with less by spotlighting the cost of capital. EVA-related metrics are increasingly being used not only in...

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Main Authors: Chen, Huey-Ling, 陳惠鈴
Other Authors: Chih-Young Hung
Format: Others
Language:zh-TW
Online Access:http://ndltd.ncl.edu.tw/handle/19533939052127055209
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spelling ndltd-TW-086NCTU02300122015-10-13T11:06:14Z http://ndltd.ncl.edu.tw/handle/19533939052127055209 A Study on the Relationship between Economic Value Added and Stock Return in Taiwan 經濟附加價值與股票報酬關聯性之研究 Chen, Huey-Ling 陳惠鈴 碩士 國立交通大學 科技管理研究所 86 Economic Value Added (EVA), developed by Stern Stewart & Co., is a financial tool that enables companies to do more with less by spotlighting the cost of capital. EVA-related metrics are increasingly being used not only in internal decision making, but as a way to evaluate company performance. It is even claimed by many in the U.S. that EVA is the best indicator of business performance. One of EVA''''s most powerful properties is its strong link to stock price. However, it is not clear if EVA will still be an effective measure of firms performance when used in countries other than the U.S. In this study, I examined the validity of EVA in the premise of Taiwan''''s stock market. Specifically, two hypotheses regarding the explanatory power of EVA are examined by cross-sectional models, industry-specific models, and different groups of systematic risk models. The primary finding of this study is that the association of EVA with stock return is not as strong as suggested in anecdotal EVA stories. EVA is neither as perfect as claimed by its advocates, nor is it the only performance measure that suggests a path to a superior stock return. Chih-Young Hung 洪志洋 --- 學位論文 ; thesis 76 zh-TW
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description 碩士 === 國立交通大學 === 科技管理研究所 === 86 === Economic Value Added (EVA), developed by Stern Stewart & Co., is a financial tool that enables companies to do more with less by spotlighting the cost of capital. EVA-related metrics are increasingly being used not only in internal decision making, but as a way to evaluate company performance. It is even claimed by many in the U.S. that EVA is the best indicator of business performance. One of EVA''''s most powerful properties is its strong link to stock price. However, it is not clear if EVA will still be an effective measure of firms performance when used in countries other than the U.S. In this study, I examined the validity of EVA in the premise of Taiwan''''s stock market. Specifically, two hypotheses regarding the explanatory power of EVA are examined by cross-sectional models, industry-specific models, and different groups of systematic risk models. The primary finding of this study is that the association of EVA with stock return is not as strong as suggested in anecdotal EVA stories. EVA is neither as perfect as claimed by its advocates, nor is it the only performance measure that suggests a path to a superior stock return.
author2 Chih-Young Hung
author_facet Chih-Young Hung
Chen, Huey-Ling
陳惠鈴
author Chen, Huey-Ling
陳惠鈴
spellingShingle Chen, Huey-Ling
陳惠鈴
A Study on the Relationship between Economic Value Added and Stock Return in Taiwan
author_sort Chen, Huey-Ling
title A Study on the Relationship between Economic Value Added and Stock Return in Taiwan
title_short A Study on the Relationship between Economic Value Added and Stock Return in Taiwan
title_full A Study on the Relationship between Economic Value Added and Stock Return in Taiwan
title_fullStr A Study on the Relationship between Economic Value Added and Stock Return in Taiwan
title_full_unstemmed A Study on the Relationship between Economic Value Added and Stock Return in Taiwan
title_sort study on the relationship between economic value added and stock return in taiwan
url http://ndltd.ncl.edu.tw/handle/19533939052127055209
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